Software AGVersion 1, April 2016

© 2015 Software AG. All rights reserved. For internal use only

INDUSTRY INITIATIVE AND ARCHITECTURE REVIEWBANKING

3 |

EXAMPLE RETAIL BANKING ARCHITECTURE‘CONNECTING THE DOTS’ – MASSIVE COMPLEXITY CONSTRAINS THE BUSINESS

Maintaining Existing

Innovation& Investment

External Interfaces

Local ACH/ RTGS

Central Banks

SWIFT

Card Gateways

Corporate Connections3rd Parties

(Credit Bureau, Reuter, OFAC)

Back Office Mid Office Front-Office Channels

Trade Clearing

Market Risk

Credit Risk

Operational Risks

Fraud/AML

Liquidity Risk

Compliance Management

CRM

Teller Services

Account Origination

IVR

Sales

Payment & Remittance

Data warehou

se

Data warehou

se

DSB (Department

al Service Bus)

DSB

(D

epar

tmen

tal

Ser

vice

Bu

s)

Payments

Loans

Deposits

Matching & Confirmatio

n

Treasury Operations

Corporate

Billing

Forex

General Ledger

Collateral Management

Collections

4 |

EXAMPLE RETAIL BANKING ARCHITECTURE‘CONNECTING THE DOTS’ – MASSIVE COMPLEXITY CONSTRAINS THE BUSINESS

Maintaining Existing

Innovation& Investment

Third Party

Local ACH/ RTGS

Central Banks

SWIFT

Card Gateways

Corporate Connections3rd Parties

(Credit Bureau, Reuter, OFAC)

Back Office Mid Office Front-Office Channels

Market Risk

Credit Risk

Operational Risks

Fraud/AML

Liquidity Risk

Compliance Management

CRM

Teller Services

Account Origination

IVR

Sales

Payment & Remittance

Data warehou

se

Data warehou

se

DSB (Departmental Service

Bus)

DSB

(D

epar

tmen

tal S

ervi

ce

Bus)

Payments

Loans

Deposits

Matching & Confirmatio

n

Treasury Operations

Corporate

Billing

Forex

Trade Clearing

General Ledger

Collateral Management

Collections

5 |

BANKING EVENT DRIVEN ARCHITECTUREELIMINATING COMPLEXITY REMOVES THE OBSTACLES

In-Memory Technology

Data Connectivity

Tasks / Processes / Decision Support

Event Processing

Business Activity Monitoring

Data warehou

se

Data warehou

se

Common Reporting

Innovation & Investment

Third

Par

ty Local ACH/ RTGS

Central Banks

SWIFT

Card Gateways

Corporate Connections3rd Parties

(Credit Bureau, Reuter, OFAC)

Payments

Loans

Deposits

Matching & Confirmatio

nTreasury

Operations

CorporateBilling

Forex

Trade Clearing

General Ledger

Collateral Managemen

t

Collections

Back Office Mid Office

Market Risk Credit Risk

Operational Risks Fraud/AML

Liquidity Risk

Compliance Managemen

t

…

CRM

Teller Services

Account Origination

IVR

SalesPayment & Remittance

Front Office

…

Channels

6 |

www.softwareag.com/banking

7 |

BANKING INITIATIVE MAPValue Driver Goal Initiative Integration Process In-Memory Data

Analytics & Decisions

Business & IT Transformation

Develop Personalized Offerings

Develop New Products

Develop Real-Time Customer Insights

Real-Time Customer Engagement

Enable Information based services

Reduce fall-off rate through a frictionless Customer Journey

Leverage new sources of data to improve front-office processes

Develop an Omni-Channel Engagement platform

Fintech onboarding

Onboard new product partners with Open Bank APIs

Develop a Digital (Mobile) Wallet Offering

Leverage Blockchain

Develop Real-Time Payment Platform

API Based Payment Services

Manage Regulatory Compliance Ensure Regulatory Requirements

Mitigate Fraud and Cybersecurity

Enhance Risk Reporting

Enhance collaboration between GRC domains and business

Digitization of risk-related core processes

Empower branch employee with tech

Redesign Branches (New age banking)

Develop a Red Carpet in branch Experience

Move non core banking processes into mid and front office

Automation of and streamlining manual processes

Improved integration of systems for end-to-end processing

Simplify the technology/architecture across the enterprise

Improve Vendor Costs/Risk management.

Plan to replace legacy systems where risk is high

Move non-core/critical systems to the cloud

Revenue

Risk Management

Cost and Efficiency

Grow Market Share and Share of Wallet

Increase conversion rate to grow revenue

Rationalize IT systems

Grow Share of Wallet with new Ecosystem based Products

Protect Payment Revenue through more new payment offering

Manager Enterprise-wide Risks

Optimize Branch Network

Increase Operational Efficiency

8 |

CURRENT STATE FUTURE STATE: DIGITAL BUSINESS PLATFORM

TASKSDECISIONS

DATAINTEGRATION

-SECURITY -INTEGRATION -PERFORMANCE/SCALE -STANDARDS -WEB SERVICES REST -MICRO-SERVICES

SCV

Branch Systems

BackBase

CRM SCPCRMSFDC

Customer Services

CRM

Temenos

Card Processing

Avaloq

Broadridge

Infosys

INTEGRATION

DATA(EVENTS)

ESB

IF IF

BUSINESS LOGIC

TASKS(PROCESSES)

DECISIONS(RULES)

SECURITY INTEGRATION PERF/SCALE STANDARDS WEB SERVICES REST MICROSERVICES

HYBRID

Temenos

CRM

InfosysCard

Process.

Cust,. Services

BackbaseAvaloq

Broadridge